The multi-decade high inflation has adversely affected the retail industry. Retailers within the home décor and furnishing space are worried about the rising prices and economic contraction as they affect consumers' ability to spend beyond necessities. Moreover, persistent global supply chain disruptions and high freight costs have increased retailers' challenges in maintaining their inventory.
Rising recession fears have dampened consumer sentiment further. This is evident from the VanEck Vectors Retail ETF’s (RTH) 21.4% year-to-date decline.
